Revenue Performance - Total revenue for Jiyi Holdings Limited decreased by approximately RMB13.7 million or 6.6%, from approximately RMB206.8 million in 1H2024 to approximately RMB193.2 million in 1H2025[23]. - Revenue from the provision of interior design and building engineering services increased significantly by approximately RMB25.3 million to approximately RMB26.3 million in 1H2025, compared to RMB1.0 million in 1H2024[24]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB39.0 million or 18.9%, from approximately RMB205.8 million in 1H2024 to approximately RMB166.8 million in 1H2025[22]. - Revenue from bulk commodity trading decreased by approximately RMB69.9 million or 34.2%, from approximately RMB204.2 million in 1H2024 to approximately RMB134.3 million in 1H2025[35]. - Revenue from building materials sales increased by approximately RMB30.9 million or 1,862.1%, reaching RMB32.5 million in 1H2025, primarily due to increased cement sales[34]. - Revenue from contracts with customers for the six months ended June 30, 2025, was RMB 193,162,000, a decrease of 6.5% compared to RMB 206,839,000 in 2024[80]. - Segment revenue from the sale and distribution of merchandise was RMB 166,836,000, while revenue from interior design and engineering services was RMB 26,326,000, totaling RMB 193,162,000[173]. Profitability and Margins - The gross profit margin for the interior design and building engineering services segment was approximately 15.0% in 1H2025, with a segment gross profit of approximately RMB3.9 million[21]. - The Group's gross profit increased by approximately RMB3.7 million or 101.7%, from approximately RMB3.6 million in 1H2024 to approximately RMB7.3 million in 1H2025[36]. - The gross profit margin for interior design and building engineering services was approximately 15.0% in 1H2025, while the gross profit margin for merchandise sales increased from approximately 1.7% in 1H2024 to 2.0% in 1H2025[37]. - The segment gross profit for the sale and distribution of merchandise was RMB 3,367,000, and for interior design and engineering services was RMB 3,949,000, resulting in a total gross profit of RMB 7,316,000[173]. Expenses and Losses - Distribution and selling expenses decreased by approximately RMB0.3 million or 37.0%, from approximately RMB0.7 million in 1H2024 to approximately RMB0.5 million in 1H2025[38]. - Administrative expenses decreased by approximately RMB5.8 million or 63.3%, from approximately RMB9.2 million in 1H2024 to approximately RMB3.4 million in 1H2025[39]. - The Group's loss for the period decreased by approximately RMB83.8 million or 90.5%, to approximately RMB8.8 million in 1H2025 compared to a loss of approximately RMB92.5 million in 1H2024[45]. - Loss before tax narrowed to RMB 8,750,000 in 2025 from RMB 92,528,000 in 2024, indicating a substantial reduction in losses[80]. - Total comprehensive loss for the period was RMB 9,094,000 in 2025, compared to RMB 89,719,000 in 2024, reflecting improved financial performance[82]. Financial Position and Liabilities - As of 30 June 2025, the net current liabilities increased by approximately RMB7.6 million, reaching approximately RMB15.8 million[50]. - Total bank borrowings amounted to approximately RMB154.3 million as of 30 June 2025, unchanged from 31 December 2024[52]. - The current ratio decreased slightly from 0.99 as of 31 December 2024 to 0.97 as of 30 June 2025[57]. - The gearing ratio increased significantly from 513.97% as of 31 December 2024 to 633.40% as of 30 June 2025[57]. - The net debt to equity ratio rose from 502.51% as of 31 December 2024 to 627.32% as of 30 June 2025[58]. - The Group recognized estimated liabilities of pending litigation totaling RMB51.5 million as of 30 June 2025, up from RMB44.7 million as of 31 December 2024[71]. - The total equity attributable to equity holders of the company decreased to RMB 38,528,000 as of June 30, 2025, down from RMB 382,182,000 at the beginning of the year[90]. - The company’s accumulated losses increased to RMB 736,029,000 as of June 30, 2025, from RMB 396,878,000 at the beginning of the year[90]. Cash Flow and Financing - The cash flows from operating activities resulted in a net cash used of RMB 2,957,000 for the first half of 2025, an improvement from RMB 3,950,000 in the same period of 2024[93]. - The company had cash and cash equivalents of RMB 1,952,000 at the end of June 30, 2025, compared to RMB 1,588,000 at the same date in 2024[94]. - The company reported a net decrease in cash and cash equivalents of RMB 3,088,000 for the first half of 2025, compared to a decrease of RMB 4,047,000 in the same period of 2024[94]. - The company did not generate any cash from investing activities during the first half of 2025, consistent with the previous year[93]. - The company repaid RMB 87,000 to related parties and RMB 44,000 in lease liabilities during the financing activities for the first half of 2025[93]. Strategic Focus and Future Outlook - The Group focused more on interior design and building engineering services, reducing resources allocated to lower-margin merchandise sales[17]. - The Group's strategic shift towards higher-margin services reflects a focus on improving profitability despite a decline in overall revenue[17]. - The Group anticipates cautious growth in financial performance while preparing for potential economic headwinds[64]. - The Group plans to accelerate the collection of pre-sale payments and other receivables to generate additional cash inflows[118]. - The Board believes the Group will have sufficient working capital to finance its operations and meet financial obligations for the next twelve months from June 30, 2025[119]. - The Group aims to control operational and administrative costs while avoiding unnecessary capital expenditures[118]. Governance and Compliance Issues - The company identified unauthorized guarantee arrangements involving loans of RMB 20,000,000 and RMB 7,000,000, which were not disclosed in the 2022 and 2023 annual reports[138][140]. - The company’s management did not secure formal board approval for the unauthorized guarantees, which constitutes a breach of compliance requirements under Chapter 14A of the Listing Rules[145][147]. - The independent valuation report confirmed that the collateral for the unauthorized guarantees is sufficient to cover the loan amounts, indicating no material impact on the consolidated financial statements for the years ended December 31, 2022, 2023, and 2024[149][150]. - The company’s prior Chief Financial Officer did not process accounting entries for the finance leases, leading to omissions in the financial reporting[146]. - The unauthorized guarantees involved connected persons, which legally required disclosure and board approval, highlighting governance issues within the company[145][147]. - The company has quantified the financial impact of these issues, presenting the effects in a detailed table in the financial report[156]. Risk Management - The company has not changed its risk management policies since the year-end, focusing on minimizing potential adverse effects on financial performance[169]. - The financial risk factors include interest rate risk, credit risk, and liquidity risk, which the company actively manages[165].
集一控股(01495) - 2025 - 中期财报